The partnerships will initiate seamless frequent flyer benefit programs, and allow unprecedented linkages. The airlines will gain in profitability and efficiency through cost savings and revenue gains. There are three crucial aspects to a customer's relationship with airlines: efficiency, safety and affordability. On the first two counts, there is no question that customers will benefit.

But if the partnerships extend to direct revenue objectives, preventing competition on price, the customer stands to lose in the long term. It is highly unlikely in the first place that benefits from increases in margin will be passed on to flyers. If thereafter, the airlines resort to joint rate increases, the customer will not just lose, but be cheated by the partnerships. Oneworld's control overflights to Australia (BA even owns a stake in Qantas) shows how customers will be at the mercy of a single organized business force on that route. Such deals also make new airline entries extremely difficult to finance: an entry barrier has effectively been set.

So far, nothing suggests that the STAR alliance has hurt customers. But it is generally accepted that an industry can continue to serve customers well with two such enormous groups of firms ranged in two partnerships, a re-examination of the basic nature of competition will be needed soon.